Buying my first rental investment.
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $129,000
Cash invested: $25,000
What made you interested in investing in this type of deal?
The simplicity of the deal and a single family was very interesting. Was just having to look at comparable homes of the market and see where my property stacks up. It's also really good time in the market right now to purchase a house with equity in it and just see it flourish.
How did you find this deal and how did you negotiate it?
I found this property through a real estate broker one that I knew before, he's actually my English teacher in high school. I was trying to do some wholesaling and turned out I just wasn't really focused on it I was doing a lot of overtime in my full-time job and I just wasn't put in the time needed for wholesaling to be successful. I found my deal through a personal relationship with the real estate broker in the area and it wasn't the best deal but the market improved it for me.
How did you finance this deal?
The finances I got from for the deal came from a mortgage broker through rocket mortgage.
How did you add value to the deal?
Well getting the deal it was actually a really bad deal, which kind of helped me understand that trust isn't easily given in the real estate market. The property was a bad deal flooding in the house, black mold in the inside of wall, previous tenant smoking which ruined the white paint and carpet and a major plumbing problem. I personally knew a general contractor and he gave me the deal of century. We were able to get it going and I was able to finish it off before left again on Navy orders.
What was the outcome?
The outcome buying this real estate investment is huge.First, it gave me a massive amount of confidence for a future in R.E. Secondly, it gave a lot of the other people who doubted me in the past it gave them almost like a taste of reality, that oh if I can do they can do it and you know if you know they want to assist me in the future and they actually do what I do they can. Lastly, it brought me a real estate vehicle where now. I'm getting $1,100 a month in rent, which is about 300 net.
Lessons learned? Challenges?
The outcome of the situation that came from me buying the property was, a massive amount of experience in the market and understanding what you need to know and what you can rely on other people to assist you in and the the percentage of the difference is huge really like 85 to 90% on you and then you can trust somebody else with the rest of it. Also help me to understand repairs needed to be done on the house and how no matter how simple you think a project might be it will always be more.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with a lot of different professionals on this deal and the only person that I would recommend would be the contractor that worked with me. He was incredibly professional and gave me a deal that only a family member would give and it gave incredible amount of experience and God bless him. I don't think that he would want anyone to know about this deal so no I don't have anyone that I would recommend.
